IRDAI is a common term when we read news or articles about new initiatives or developments in the insurance sector. But what exactly is IRDAI? What do they do? The next few minutes you spend here will make you understand the roles and the importance of IRDAI.
What is IRDAI?
- Every domain has a legislative body that manages all the industrial operations . They also act as a meditator in the event of a conflict and they ensure to maintain fair practice.
- IRDAI or the Insurance Regulatory Development and Authority of India is a government-led organization in charge of regulating and developing the insurance sector in India.
- The insurance market has become more competitive over time, and there are now a lot of insurance companies offering a variety of life and non-life insurance plans. Every insurance business has its own set of rules and rates, which makes the public doubtful of insurance companies’ integrity.
- Thus, it was constituted to safeguard the rights of policyholders and also they regulate the insurance sector in India and educate the public on the importance of purchasing Insurance.
- They currently has 24 life insurance firms and 34 general insurance companies registered under it.
What does the IRDAI do?
The role and responsibilities of IRDAI are given in detail under Section 14 of the IRDAI Act, 1999.
- Ensures and fosters the continuous progress of the insurance industry solely for the benefit of the common people who purchase policies to protect themselves during unfortunate events.
- In addition, they protect the interest of the policyholders so that they have faith in the system.
- Encourages high levels of fairness and honesty in the insurance sector.
- Addresses all types of conflicts and speeds up the claim settlement process.
- Sets guidelines and keep records of scammers, fraudsters and take necessary actions
- Issues registration certificate for Insurance firms
- Provides middlemen (brokers, agents) with license
- Determines solvency margin
- Regulates premium rates
Panel members of IRDAI
IRDAI has a total of 10 members: which includes one chairman, five full-time members, and four part-time members. Each of these members has a tenure of 5 years.
Insurance policies regulated by IRDAI
- Life Insurance
- General Insurance
- Property Insurance
- Travel Insurance
- Gadget Insurance
Click here to read about the recent health initiatives issued by IRDAI.
Do you know that e-Insurance is mandatory for all claims above 10 lakh rupees?
E-Insurance is also an initiative by IRDAI to help you organize and access your policies digitally. E-Insurance is mandated by them to make the claim process easier for both the policyholders and the companies. PolicyGenie is a secured platform licensed by IRDAI helps you to get your unique e-Insurance account which is absolutely free of cost through a simple registration process. It has numerous benefits so get your E-Insurance account today and enjoy an easy and quick claim process.
Be aware of the multiple benefits that IRDAI has been continuously rolling out and make use of them. To know more, follow us here and on our social media channels.